Afreximbank signs collaboration agreement with MIAI and China-Eximbank for development of industrial parks

23 2017

The African Export-Import Bank
(Afreximbank) and the Export-Import Bank of China have signed a
cooperation agreement to create a $1 billion China-Africa Investment and
Industrialization Programme to facilitate the construction and creation
of industrial parks and special economic zones on the continent.

The agreement, signed by Afreximbank President Dr. Benedict Oramah and
Lui Liang, President of Export-Import Bank of China, during the 23rd
Annual General Meeting of Shareholders of Afreximbank in Mahe,
Seychelles, on Saturday, will have the two institutions work together to
provide Africa with capacity for light manufacturing and primary
processing of raw materials and commodities.

It would also cover logistics that facilitate intra-regional trade,
such as shipping equipment, railways and rolling stock, and trade
facilitating infrastructure, such as power.

Other aspects of the agreement include improvement in trade finance
flows into Africa, through risk participation arrangements,
cross-referral of business contacts, and indirect funding of
Export-Import Bank of China to obligors through Afreximbank, as well as
engagement in joint capacity building initiatives, including staff and
information exchange.

Complementing the programme will be an engagement with the Made In
Africa Initiative under which Afreximbank and the Initiative will
develop and operate industrial and agro-processing parks to increase
value addition on the continent.

Under the terms of a separate cooperation agreement, signed between
Afreximbank and the Made in Africa initiative during the same ceremony,
Afreximbank and the Initiative will also pursue the facilitation of
investment flows into Africa by working with African governments to
create, develop, and improve "soft" and "hard" infrastructure required
for industrialization.

Signed by Dr. Oramah and Helen Hai, Founder of the Made In Africa
Initiative, for their respective organisations, the agreement requires
Afreximbank and the Initiative to also engage in the promotion of export
trading companies to facilitate market access for “Made-in-Africa”
goods; and in investment promotion, including capacity building and
knowledge transfer.

Afreximbank will, in addition, work with the Initiative on the
establishment of a pan-African equipment leasing platform to supply
heavy duty and manufacturing equipment to support local content in the
various sectors of the African economy.

"The Agreements signed here today will help create an effective and
prudent framework which will allow us to reach our common goal, which is
the pursuit of the industrialization and economic development in
Africa," said Dr. Oramah.

He commended the Chinese Government for the financing support it has
provided for the development of critical sectors of the African economy
through its major development institutions like the China Development
Bank and the Export Import Bank of China, noting that the cumulative
investment in Africa since 2000 had surpassed $80 billion.

Source: This news article was originally published by Afrexim bank https://afreximbank.com